Integrated report 2021

The company responsible for the management of the national railway network, currently amounting to 19,000 km, is PKP Polskie Linie Kolejowe S.A.

The development of the railway construction sector in Poland is possible mainly thanks to the PLN 77 billion National Railway Programme (KPK), which includes investments on railway lines subsidised by the Ministry of Infrastructure. It was prepared for the period from 2016 to 2023, i.e. until the end of the possibility of financing projects under the European Union’s financial perspective 2014-2020. The KPK shall specify the volume and sources of funding, including EU and national resources.

According to PKP PLK, at the end of 2021, the advancement of KPK in terms of the value of completed and ongoing investments totalled 92.8%. The investment, worth PLN 20.4 billion has been completed. Investments worth PLN 50.8 billion were in progress at various levels of advancement. Railway investments are completed on average in 2-3 years, this means that contractors have a guaranteed work front until mid-2023.

The value of the order portfolio of contractors specialising in railway investment is steadily decreasing. In 2021 there was a halt in announcing new bids – according to PKP PLK – investments worth PLN 2.5 billion were at the bidding stage. Some companies operating in the rail construction sector are beginning to experience liquidity problems due to a shortage of new orders.

The short-term outlook for the development of railway construction in Poland is relatively uncertain due to the risk of Poland not receiving EU funds under the National Reconstruction Plan, which is expected to be an important source of funding for investment in railway infrastructure. Moreover, although the new EU financial perspective started in 2021, its key operational programmes have still not been approved.

According to PKP PLK, the company is prepared to announce new bids in case of approval of financial plans under the National Reconstruction Plan and the new EU perspective. Documentation for the planned investments is ready. In 2022 PKP PLK plans to initiate proceedings for an estimated amount of about PLN 11-12 billion.

In November 2021, the Council of Ministers adopted a resolution to update the KPK. The KPK’s expenditure planned for 2022 is PLN 15,360 million (compared to PLN 11,288 million in 2021).

In January 2022, PKP PLK announced bidding procedures for five investments with a total value of approximately PLN 5.9 billion. Announced tenders include reconstruction of: the Będzin – Katowice Szopienice section (worth about PLN 0.8 billion), the Tychy – Wisła Bridge section (direction Czechowice-Dziedzice, PLN 1 billion), the Zabrzeg – Zebrzydowice – Czech border section (PLN 1.9 billion), the Poznań bypass railway (PLN 1.6 billion) and the Słupsk station (PLN 0.6 billion). Four of the five investments have applied for the Connecting Europe CEF 2 funding. According to PKP PLK, contracts with contractors will be signed in autumn of 2022. Further major bids were announced in February of 2022. 47 applications with an estimated value of PLN 18 billion were qualified for the final selection stage of the Local and Regional Rail Infrastructure Completion Programme – Rail Plus Programme. The total value of the programme is PLN 6.6 billion, although the Ministry of Infrastructure has announced an increase in its budget. The investment should be completed in 2028.

In addition, PKP S.A. runs the Station Investment Programme for 2016-2023, which includes 189 station investments for a total of PLN 1.6 billion. In 2021, 21 railway stations were commissioned (a total of 44 stations were commissioned). As for the remaining investments planned under this programme: 53% of the investments are at the construction stage, 30% at the design stage and 17% at the preparation stage.

The long-term perspective for the development of railway construction in Poland is favourable, taking into account the possibilities of co-financing investments within the framework of FEnIKS and the CEF programme, as well as the plans to build railway lines as part of the construction of the Central Railway Port (CPK).

A total of 1789 km of railway lines are to be built as part of the CPK Programme. The CPK company announced procedures for the so-called Contract Engineer. It concerns services related to the construction of railway “spokes” throughout Poland. The estimated value of the framework agreement is PLN 2.5 billion and it is to be valid for a period of eight years. It has also signed an agreement for a feasibility study on the High Speed Railway from the CPK node – i.e. Solidarity Airport – via Płock to Włocławek. This over 120-kilometre section is part of the so-called CMK-North, i.e. the extension of the Central Railway Line towards Kujawy and the Tricity.